China’s Foreign Aid and its Role in the International Aid Architecture

Abstract

China has long been an aid provider, although the recent and remarkable surge in China’s foreign aid has important implications for the global aid architecture. It relies on aid principles that diverge in many ways from those of traditional Development Assistance Committee (DAC) donor countries, particularly in relation to non-interference, mutual benefit and non-conditionality. China’s foreign aid also relies on a mixing of economic cooperation, trade and investment deals. While several Western scholars have examined the Chinese development cooperation system, few voices from China have been heard in European and North American journals and media. This chapter aims to offer a Chinese perspective on the evolution of China’s foreign aid. It focuses on the aid principles that have thus far informed Chinese development assistance, highlighting the successful outcomes achieved so far in Africa and South-East Asia. The chapter also addresses the main shortcomings of the Chinese approach, by recommending the improvement of institutional transparency, and strengthening of dialogue with DAC donors, all with a view towards learning from past experiences and exchanging best practices. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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